It was 2007 and I was pretty sure that a huge insult was hurled my way …
My wife’s father was visiting Manhattan and asked how business was.“Great!” I said with extra enthusiasm to let him know his daughter was in good hands.
Then he casually replied, “well whatever you are doing now will change over and over again.” Huh?
Did he not believe in me?
Did he not believe in what I was doing?
I wasn’t sure but it felt like a huge insult and rather than dwell on it, I set out to just prove him wrong. Over a decade later, I can say with confidence, I Failed.
I failed in the absolute best way possible. You see, what I learned was that not only was I not being insulted, I was being given some of the best advice ever.
In order to continue to be successful you must be committed to changing over and over again. If you want to be successful as a trader then a commitment to change is essential.
Look at oil. In less than ten years, it’s lost much more than half of it’s value. At the same time, an investment in Amazon would have secured your retirement.
If you invested in Twitter, GoPro or Shake Shack then you have watched the market go up as your funds have dwindled. Yet the same investments in Facebook, Netflix or Apple would have you blushing with pride.
An unwillingness to pivot is the bad kind of stubborn. Look at how much money he lost by being stubborn. Fast forward to present day, there’s a monumental investing shift happening right before our eyes.
Individual stocks have been drained of liquidity, replaced with a massive move into ETFs. Trillions of dollars have poured into ETFs for one very specific reason.
ETFs are a cure all for the biggest problem facing the market today. Because they are made up of a basket of stocks or funds, they are diversified. Risk is more contained.
As an example, if you owned a Retail ETF (and I am definitely not saying you should) and Macy’s gets hit with awful news, your ETF is more insulated because Macy’s would only make up a small percentage of the basket if any depending on trade parameters.
Likewise, selecting an ETF means you don’t have to be right on just one specific stock, you have many more chances to be right.
This non-commitment is what makes them so popular right now because the biggest problem facing the market today is a complete lack of comfort with what comes next.
Stocks have been going up for 9 years which makes them tough to buy but every dip gets bought which makes them even tougher to sell.
Yet, not being involved at all means removal from the only vehicle by which your money can grow at a normal rate. ETFs let you in but with a safety net and everyone wants that comfort right now.
Throughout the history of the market, the greatest trades have come from fleeting moments. As traders, our goal is to stay in the game and preserve capital so that when those moments happen, we can take advantage of them.
His career was defined by moments. Equate it with a boxing match. We have to throw a lot of jabs before that cross comes out and even more before we unload the upper cut.
As you wait for the right time to strike, prepare with the greatest trading book ever written. The way you prepare today will allow you to profit tomorrow.
P.S. There’s only one book I’ve read more than once and it’s The Greatest Trading Book Ever Written.
P.P.S. Grab a copy today and also receive a special report on the biggest thing in trading right now, ETFs.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading.